Ted Baker founder Ray Kelvin has taken temporary leave of absence after allegations of harassment were made against him.
The fashion chief executive, 63, has been accused of enforcing a 'hugging' culture at the company and asking young female workers to sit on his knee and let him massage their ears.
Ted Baker was forced to launch an independent investigation following a petition from staff.
In the petition, Mr Kelvin was also accused stroking people's necks and making sexual innuendos.
Ted Baker founder Ray Kelvin has taken temporary leave of absence after a string of harassment allegations
Mr Kelvin said in a statement that the accusations had 'raised some very serious and upsetting issues'.
'Ted Baker has been my life and soul for 30 years,' he said.
'I love this company and I care deeply for all my colleagues. It's for that reason that I have decided to take a temporary leave of absence.'
The company said it had been made aware of 'further serious allegations' concerning Mr Kelvin's conduct.
Chief operating officer Lindsay Page has been appointed interim CEO.
The news comes after video emerged showing the fashion CEO embracing former Exeter City star Jamie Cureton in a toe-curling post match interview.
The fashion group's founder interrupts the striker several times and at one point asks the footballer: 'Can you please put your hand away from my bottom?
'Keep them round the front because we know what you're like.'
At one point Mr Kelvin, who in is trademark style covers his face with his jacket, kisses Mr Cureton on the cheek as he hugs him.
It is unclear exactly why Mr Kelvin appears in the clip, which was uploaded to YouTube in 2013.
But he was said to be close friends with Exeter City's then manager Paul Tisdale, who became known for his eye-catching Ted Baker outfits he wore on the touchline.
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News Pictures Ted Baker founder Ray Kelvin takes temporary leave as chief executive amid harassment claims
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